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Tech Layoffs vs Hiring Demand: The Surprising Trend in 2026

The technology job market is becoming increasingly divided, with experienced professionals seeing stronger demand even as layoffs continue. A Toptal report found that demand for experienced technology and professional services workers increased in early 2026, while entry-level hiring declined.

Written By : Soham Halder
Reviewed By : Manisha Sharma

While layoffs continue across the industry, companies are increasingly seeking experienced technology professionals who can handle complex work and adapt to changing business needs, according to a new report from professional services firm Toptal.

Toptal's latest findings suggest that the slowdown in hiring did not affect every section of the workforce equally. Demand for experienced technology and professional services personnel increased 10.5% quarter-on-quarter and 6.4% year-on-year in the first quarter of 2026.

Experience Becomes a Bigger Advantage

The study noted the rising requirement for workers who can contribute more than just their technical skills to their jobs. Companies want workers who can think about business situations and make decisions on their own, and those who can integrate themselves with new technologies.

Tasks that earlier required big teams can now be performed with the help of software programs, reducing the number of people needed in the company. It seems like companies are becoming more interested in hiring professionals who can take responsibility for projects, rather than individual tasks.

Entry-Level Hiring Faces More Pressure

The stronger demand for experienced workers comes against a difficult backdrop for people starting their careers. Toptal's analysis found that entry-level hiring fell 6% between December 2025 and February 2026 compared with the same period a year earlier, while hiring for mid-level managers declined 10%.

As reported by Toptal, AI-related firings accounted for 25% of all job cuts in the United States in March 2026, adding yet another dimension to the debate over the decline in traditional entry-level jobs. Nevertheless, the report offers no indication that jobs in the tech sector will become extinct. The only thing changing is the recruitment process itself.

Also Read: Where Jobs Are Growing in the AI Age: 9 Careers Shaping the Future

What Employers Want Now

According to Toptal, the demand for candidates who can demonstrate proficiency with the technology being used, rather than just listing the technological skills on their resumes, is increasing. As a technical worker, this may refer to tangible results that involve actual project completion, participation in open-source projects, or using the technology to solve some business-related issues.

At the same time, the report highlighted opportunities for workers to combine their existing knowledge with new technologies. Workers who know their industry and how to use some emerging technologies to be more productive may enjoy such opportunities.

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